An MLO moves from State X (requiring a $50,000 bond) to State Y (requiring a $75,000 bond) and transfers their license. Their current bond is for $50,000. What must occur before the MLO can originate loans in State Y?
Correct Answer
A) The bond must be increased to $75,000 and approved by State Y
When an MLO transfers their license to a state with higher surety bond requirements, they must meet the new state's requirements before beginning operations. The existing $50,000 bond must be increased to $75,000 and the new bond amount must be approved by State Y's regulatory authority.
Why This Is the Correct Answer
When an MLO transfers their license to a state with higher surety bond requirements, they must meet the new state's requirements before beginning operations. The existing $50,000 bond must be increased to $75,000 and the new bond amount must be approved by State Y's regulatory authority.
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